Archives: Solution Manual
978-1111823450 Chapter 16 Solution Manual Part 3
16.17 (Cypress Corporation; interpreting the statement of cash flows.) a. Although net income increased between 2011 and 2013, the b. The principal factors causing cash flow from operations to increase in 2013 is an increase in net income. Inventories decreased […]
978-1111823450 Chapter 16 Solution Manual Part 2
16-11Solutions 16.4 continued. (13) Property, Plant, and Eq ui pm en t ………………………. 875.7 Solutions16-12 Cash (Investing—Acquisition of Property, Plant, and Equipment)…………………………….. 875.7 (14) Investments in Securities ……………………………….. 44.5 Cash (Investing—Acquisition of Su b si d i a ri e […]
978-1111823450 Chapter 16 Solution Manual Part 1
CHAPTER 16 STATEMENT OF CASH FLOWS: ANOTHER LOO K Problems and Cases: Answers and S ol u tio ns 16.1 (Effects of transactions on statement of cash flows.) (amounts in US$) a. The journal entry to record this transaction is: […]
978-1111823450 Chapter 15 Solution Manual Part 3
15-19Solutions 15.27 e. continued. Assets = Liabilities + Shareholders’ Equity (Class.) +10,000 +4,000 IncSt RE –6,000 (4b) Securities Available for Sale ……………………… 2,000 Unrealized Gain on Securities Available for Sale (Accumulated Other Comprehensive Income) ……………………… 2,0 00 Assets = […]
978-1111823450 Chapter 15 Solution Manual Part 2
Solutions15-12 Cash…………………………………………………………………… 46,180,000 Convertible Preferred S t ock …………………………….. 43,450, 000 Additional Paid-In Capital (Stock Warrants)……. 2,730, 000 Assets = Liabilities + Shareholders’ Equity (Class.) +46,180,000 +43,450,000 ContriCap +2,730,000 ContriCap To record issuance of convertible preferred stock with stock warrants. […]
978-1111823450 Chapter 15 Solution Manual Part 1
CHAPTER 15 SHAREHOLDERS’ EQUITY: CAPITAL C ONT RIB UT I ON S AND D IS T RIB UT I ON S Questions, Exercises, and Problems: Answers and S ol u tio ns 15.1 See the text or the glossary at […]
978-1111823450 Chapter 14 Solution Manual Part 3
© 2013 Cengage Learning. All r ights reserved. No d is t r ibution allowed without express a u t hor ization. Solutions14-20 14.29 b. continued. Sales Revenue …………….. $ 400,000 $ 125,000 $ 525,000 Equity in Earnings of Valley […]
978-1111823450 Chapter 14 Solution Manual Part 2
© 2013 Cengage Learning. All r ights reserved. No d is t r ibution allowed without express a u t hor ization. Solutions14-12 (8) Amortization Expense………………………………………. 4,000 Investment in Stock of Vogel Company…………… 4,000 Assets = Liabilities + Shareholders’ Equity […]
978-1111823450 Chapter 14 Solution Manual Part 1
CHAPTER 14 INTERCORPORATE INVESTMENTS IN COMMON STOCK Questions, Exercises, and Problems: Answers and S ol u tio ns 14.1 See the text or the glossary at the end of the book. 14.2 Control is present when one entity has the […]
978-1111823450 Chapter 13 Solution Manual Part 3
13.31 continued. December 31, 1 13.28 (Delmar; accounting for forward commodity price contract as a cash flow hedge.) (amounts in US$) a. Delmar does not make an entry on October 31, 2013, because the forward commodity contract is a mutually […]
978-1111823450 Chapter 13 Solution Manual Part 2
© 2013 Cengage Learning. All r ights reserved. No d is t r ibution allowed without express a u t hor ization. liability for the full purchase price. The commitment is an executory contract. It recognizes the commitment only to […]
978-1111823450 Chapter 13 Solution Manual Part 1
CHAPTER 13 MARKETABLE SECURITIES AND D ERIVA T IVES Questions, Exercises, and Problems: Answers and S ol u tio ns 13.1 See the text or the glossary at the end of the book. 13.2 a. Debt securities that a firm […]
978-1111823450 Chapter 12 Solution Manual Part 3
© 2013 Cengage Learning. All r ights reserved. No d is t r ibution allowed without express a u t hor ization. CHAPTER 12 LIABILITIES: OFF-BALANCE-SHEET F I N A N CI NG , RETIREMENT BENEFITS, AND INCOME T A […]
978-1111823450 Chapter 12 Solution Manual Part 2
© 2013 Cengage Learning. All r ights reserved. No d is t r ibution allowed without express a u t hor ization. 12.23 (Fleet Sneaks; preparing journal entries for income tax expense.) (amounts in millions of US$) a. 2011 Income […]
978-1111823450 Chapter 12 Solution Manual Part 1
© 2013 Cengage Learning. All r ights reserved. No d is t r ibution allowed without express a u t hor ization. 40 Solutions12–22 i. 2013 Pension Expe ns e ……………………………………………….. 253 394 Assets = Liabilities + Shareholders’ Equity (Class.) […]
978-1111823450 Chapter 11 Solution Manual Part 3
b Oc tob er 2012 $550 Million 10 Years $545.6 Million 5.4% 5.48 % c Oc tob er 2012 $450 Million 30 Years $445.6 Million 5.8% 5.87 % d 11.32 (Home Supply Company; interpreting disclosures of long-term debt.) (amounts in […]
978-1111823450 Chapter 11 Solution Manual Part 2
……………………………………. 2 d. Bonds Payable [= 0.20 X ($1,845,558 + $12,278 + 374,146 $12,892)]…………………………………………….. Loss on Repurchase of Bonds ……………………………. Cash……………………………………………………. 53,933 428, 07 9 $2,000,000 X 0 . 78941a ……………………………………………… $ 1,578,820 $80,000 X 7.01969b ………………………………………………….. 56 1 , […]
978-1111823450 Chapter 11 Solution Manual Part 1
CHAPTER 11 NOTES, BONDS, AND L EASES Questions, Exercises, and Problems: Answers and S ol u tio ns 11.1 See the text or the glossary at the end of the book. 11.2 Generally, accountants initially record assets at acquisition cost […]
978-1111823450 Chapter 10 Solution Manual Part 2
10.27 (Wilcox Corporation; working backward to derive proceeds fr om disposition of plant assets.) (amounts in US$) 10.28 (Journal entries to correct accounting errors.) (amounts in US$) 10.29 (Moon Macrosystems; recording transactions involving tangible and intangible assets.) (amounts in US$) […]
978-1111823450 Chapter 10 Solution Manual Part 1
CHAPTER 10 LONG-LIVED TANGIBLE AND INTANGIBLE ASSE T S Questions, Exercises, and Problems: Answers and S ol u tio ns 10.1 See the text or the glossary at the end of the book. 10.2 The central concept underlying GAAP for […]
978-1111823450 Chapter 1 Solution Manual Part 4
Title: 1.40 QA_Ori: (Block’s Tax and Bookkeeping Services; cash versus accrual accounting.) (amounts in US$) a. Income for July 2013: QA_Edit: (Block’s Tax and Bookkeeping Services; cash versus accrual accounting.) (amounts in US$) a. Income for July 2013: (1) Cash […]
978-1111823450 Chapter 1 Solution Manual Part 3
Title: 1.34 QA_Ori: (SinoTwelve, a Chinese manufacturer; balance sheet relations.) (amounts in thousands of US$) The missing items appear in boldface type. QA_Edit: The missing items appear in boldface type. Title: 1.35 QA_Ori: (EastonHome, a consumer products manufacturer; income statement […]
978-1111823450 Chapter 1 Solution Manual Part 2
QA_Edit: Title: 1.24 millions of US$) QA_Edit: Title: 1.25 QA_Ori: (Veldt, a South African firm; retained earnings relations) Title: 1.23 QA_Ori: (GrandRider, an automotive manufacturer; income statement relations.) (amounts in millions of pounds sterling) QA_Ori: (AutoCo, an automotive manufacturer; income […]
978-1111823450 Chapter 1 Solution Manual Part 1
Title: 1.1 terms and concepts discussed in the chapter. Students may wish to consult the glossary at the end of the book in addition to the definitions and discussions in the chapter. Title: 1.2 QA_Ori: Setting Goals and Strategies: Although […]
978-0133428704 Chapter 9 Solution Manual Part 7
9-40 (20 min.) Cost allocation, responsibility accounting, ethics (continuation of 9-39). In 2015, only 740,000 Topman meals were produced and sold to the hospitals. Smith suspects that hospital controllers had systematically inflated their 2015 meal estimates. Required: 1. Recall that […]
978-0133428704 Chapter 9 Solution Manual Part 6
SOLUTION 1. Fixed manufacturing overhead rate = $576,000/24,000 units = $24 per unit Manufacturing cost per unit: $20 direct materials + $35 direct mfg. labor + $9 var. mfg. OH + $24 fixed mfg. OH = $88 Selling price: $88 […]
Chapter 9 Denominator Level Capacity Concepts
Absorption-Costing Income Statement Theoretical Capacity Practical Capacity Normal Capacity Utilization Revenues (2,460,000 bbls. $47 per bbl.) $115,620,000 $115,620,000 $115,620,000 Cost of goods sold Beginning inventory 0 0 0 Variable mfg. costs 80,634,000 80,634,000 80,634,000 Fixed mfg. overhead costs allocated […]
978-0133428704 Chapter 9 Solution Manual Part 4
SOLUTION This problem always generates active classroom discussion. 1. The treatment of fixed manufacturing overhead in absorption costing is affected primarily by what denominator level is selected as a base for allocating fixed manufacturing costs to units produced. In this […]
978-0133428704 Chapter 9 Solution Manual Part 3
9-23 (40 min.) Variable and absorption costing, sales, and operating-income changes. Smart Safety, a three- year-old company, has been producing and selling a single type of bicycle helmet. Smart Safety uses standard costing. After reviewing the income statements for the […]
978-0133428704 Chapter 9 Solution Manual Part 2
Absorption-costing Variable costing Fixed manufacturing Fixed manufacturing 2. operating income – operating income = costs in ending inventory – costs in beginning […]
978-0133428704 Chapter 9 Solution Manual Part 1
9-1 CHAPTER 9 INVENTORY COSTING AND CAPACITY ANALYSIS 9-1 No. Differences in operating income between variable costing and absorption costing are due to accounting for fixed manufacturing costs. Under variable costing, only variable manufacturing costs are included as inventoriable costs. […]
978-0133428704 Chapter 8 Solution Manual Part 7
SOLUTION 1. In the columnar presentation of variable overhead variance analysis, all numbers shown in bold are calculated from the given information, in the order (a)–(e). VARIABLE MANUFACTURING OVERHEAD Flexible Budget: Budgeted Input Qty. Actual Costs Incurred Actual Input Qty. […]
978-0133428704 Chapter 8 Solution Manual Part 6
7. Fixed Setup Overhead Variance Analysis for Rae Steven Publishing Company for 2014 Actual Static Budget Standard hours Fixed Overhead Fixed Overhead × Budgeted Rate (434 × 7.0 × $20) $68,000 $53,200 $60,760 $14,800 U $7,560 F Spending variance Production-volume […]
978-0133428704 Chapter 8 Solution Manual Part 5
SOLUTION Known figures denoted by an * Case A: Actual Costs Incurred Actual Input Qty. × Budgeted Rate Flexible Budget: Budgeted Input Qty. Allowed for Actual Output × Budgeted Rate Allocated: Budgeted Input Qty. Allowed for Actual Output × Budgeted […]
978-0133428704 Chapter 8 Solution Manual Part 4
Required: 1. For the month of April, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): a. Direct materials price variance (based on purchases) b. Direct materials efficiency variance c. Direct manufacturing labor price variance d. […]
978-0133428704 Chapter 8 Solution Manual Part 3
SOLUTION 1. Easy Meals Now (May 2014) Actual Results Flexible Budget Static Budget Output units (number of deliveries) 8,600 8,600 12,000 Hours per delivery 0.66a 0.70 0.70 Hours of delivery time 5,660 6,020b 8,400c Variable overhead costs per delivery hour […]
978-0133428704 Chapter 8 Solution Manual Part 2
Fixed Manufacturing Costs and Variances a. Fixed Manufacturing Overhead Control 12,180 Salaries Payable, Acc. Depreciation, various other accounts 12,180 To record actual fixed manufacturing overhead costs incurred. b. Work–in–Process Control 22,050 Fixed Manufacturing Overhead Allocated 22,050 To record fixed manufacturing […]
978-0133428704 Chapter 8 Solution Manual Part 1
8- 1 CHAPTER 8 FLEXIBLE BUDGETS, OVERHEAD COST VARIANCES, AND MANAGEMENT CONTROL 8-1 Effective planning of variable overhead costs involves: 1. Planning to undertake only those variable overhead activities that add value for customers using the product or service, and […]
978-0133428704 Chapter 7 Solution Manual Part 7
SOLUTION 1. Computing unit selling prices and unit costs of inputs: Actual selling price = $3,626,700 ÷ 462,000 = $7.85 Budgeting selling price = $3,360,000 ÷ 420,000 = $8.00 Selling-price variance = Actual selling price […]
978-0133428704 Chapter 7 Solution Manual Part 6
SOLUTION 1. Direct Materials: Actual Costs Incurred (Actual Input Qty. × Actual Price) Actual Input Qty. × Budgeted Price Flexible Budget (Budgeted Input Qty. Allowed for Actual Output × Budgeted Price) Wool (given) $9,000 3,500 $3.40 $11,900 200 […]
978-0133428704 Chapter 7 Solution Manual Part 5
SOLUTION 1. Materials Variances Actual Costs Incurred (Actual Input Qty. × Actual Price) Actual Input Qty. × Budgeted Price Flexible Budget (Budgeted Input Qty. Allowed for Actual Output × Budgeted Price) Direct Materials (5,200 × $17a) $88,400 Purchases Usage (5,200 […]
978-0133428704 Chapter 7 Solution Manual Part 4
7-30 (30 min.) Variance analysis, nonmanufacturing setting. Marcus McQueen has run In-A-Flash Car Detailing for the past 10 years. His static budget and actual results for June 2014 are provided next. Marcus has one employee who has been with him […]
978-0133428704 Chapter 7 Solution Manual Part 3
SOLUTION For requirement 1 from Exercise 7-25: a. Direct Materials Control 18,500 Direct Materials Price Variance 370 Accounts Payable Control 18,870 To record purchase of direct materials. b. Work-in–Process Control 20,000 Direct Materials Efficiency Variance 1,500 Direct Materials Control 18,500 […]
978-0133428704 Chapter 7 Solution Manual Part 2
SOLUTION 1. The key information items are: Actual Budgeted Output units (scones) Input units (pounds of pumpkin) Cost per input unit 60,800 16,000 $ 0.82 60,000 15,000 $ 0.89 Peterson budgets to obtain four pumpkin scones from each pound of […]
978-0133428704 Chapter 7 Solution Manual Part 1
7-1 CHAPTER 7 FLEXIBLE BUDGETS, DIRECT-COST VARIANCES, AND MANAGEMENT CONTROL 7-1 Management by exception is the practice of concentrating on areas not operating as expected and giving less attention to areas operating as expected. Variance analysis helps managers identify areas […]
978-0133428704 Chapter 6 Solution Manual Part 8
Required: 1. Prepare each of the following for June: a. Revenues budget b. Production budget in units c. Direct material usage budget and direct material purchases budget in both units and dollars; round to dollars d. Direct manufacturing labor cost […]
978-0133428704 Chapter 6 Solution Manual Part 7
5. Direct Material Usage Budget in Quantity and Dollars For the Year Ending December 31, 2015 Material Plastic Bristles Total Physical Units Budget Direct materials required for Combs (12,600 units × 5 oz and 0 bunches) 63,000 oz. Brushes (14,200 […]
978-0133428704 Chapter 6 Solution Manual Part 6
6-1 6-38 (30 min.) Cash budgeting, chapter appendix. Retail outlets purchase snowboards from Skulas, Inc., throughout the year. However, in anticipation of late summer and early fall purchases, outlets ramp up inventories from May through August. Outlets are billed when […]
978-0133428704 Chapter 6 Solution Manual Part 5
6-1 SOLUTION 1. Revenue Budget For the Month of April Units Selling Price Total Revenues Cat-allac 530 $205 $108,650 Dog-eriffic 225 310 69,750 Total $178,400 2. Production Budget For the Month of April Product Cat-allac Dog-eriffic Budgeted unit sales 530 […]
978-0133428704 Chapter 6 Solution Manual Part 4
6-1 SOLUTION 1. Increase in Costs for the Year Assume Trendy uses New Dye Units to dye 60,000 Cost differential ($1.25 – $0.40) per ounce × 3 ounces × $2.55 Increase in costs $153,000 Because the fine is only $120,000, […]